But the lender points out that prices remain 4 per cent higher than two years ago.
Nationwide chief economist Fionnuala Earley says: “The pace of house price falls slowed significantly in June. House prices fell by 0.9 per cent during the month, less than half of the rate of the 2.5 per cent fall recorded in May.”
Nationwide says that house purchase transactions remain subdued across the UK.
Earley adds: “With house purchase transactions so far below their long term trend it seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months. However, as prices continue to fall affordability measures become more favourable for those in a well financed position to be able to buy.”